Despite severely depleted numbers in the ruling government, Premier Juliana O’Connor-Connolly piloted 13 financial services-related bills in the Parliament on Monday, leaning on the support of the opposition, including four UPM deflectors, to get the legislation passed in the House.
The slew of bills, most of which will see changes to fees in the financial services industry and in some cases the introduction of new administrative fees, were passed with little challenge from MPs.
A 14th bill, the Information and Communications Technology (Validation) Bill, 2024, related to OfReg licensing fees, was also passed.
Given O’Connor-Connolly’s current position in the Parliament as a minority government, which at last count stood at seven members, she needs the support of opposition MPs to call a meeting of the House and carry her legislative agenda forward.
The premier’s previous coalition broke down into a minority government following the departure of Deputy Premier André Ebanks, Sustainability and Climate Resiliency Minister Katherine Ebanks-Wilks, Health Minister Sabrina Turner and Parliamentary Secretary Heather Bodden.
No mention was made of the cruise pier referendum bill nor the proposed amendments to the National Conservation Act during the House sitting.
‘Urgent’ bills
O’Connor-Connolly repeatedly thanked legislators for attending the meeting, ensuring the House had a quorum to take the bills through to passage.
She navigated the bills through the parliamentary process, asking for lawmakers’ support.
She explained the government fee structure is such that there is no automatic way to raise fees, “and so we have to bring them as we bring [them] today and set primary legislation, some cases within schedules or by secondary legislation such as regulation”.
Ebanks, who was previously O’Connor-Connolly’s financial services minister, noted that though the bills did not meet the constitutional 28-day consultation period, he and his team, which includes Ebanks-Wilks, Turner and Bodden, were prepared to support them as they had undergone a comprehensive industry consultation process.
O’Connor-Connolly said she deemed them as urgent enough to waive the 28-day consultation process and had notified House Speaker Sir Alden McLaughlin of this by way of letter.
She thanked lawmakers for supporting the bills, which she said were “important” to the industry and a source of revenue for the government.
Ebanks questioned whether the proposal for changes to the class B(iv) category for insurers would be “attempted to be enacted” before the term ends.
O’Connor-Connolly said while anything is possible, she would need to take that proposal to Cabinet for approval.
She also reminded members that she was “without notice thrown in” to go and negotiate financial services matters in the UK, which she did in the interest of the country, as well as moving forward some 13 bills, “which I tried to wrap my head and [am] still trying to wrap my head around to present, because they are important”.
She said she was extremely grateful for the full support and collaboration in the House, but she said she could not give a commitment to take the class B(iv) category change forward “because it’s a huge portfolio, and I received no briefing notes”.
Opposition Leader Joey Hew, in supporting the bills, said it has been a long time since any fees in this sector had been increased, and that the industry has evolved and new fees needed to be introduced.
He cautioned the financial services sector about passing the burden along.
“It is my hope that industry will be prudent in how it seeks to recoup these fees. Financial services are an important part of our economy, which appears to be thriving nonetheless,” he said.
Hew added that Cayman must not become complacent, as the cost of business has been rising.
Though the meeting was cordial, there were some pockets of tension between Ebanks and his former government colleagues, which prompted McLaughlin’s intervention.
Call for growth
As the premier tabled amendments to the Exempted Limited Partnership Bill, she said the fees were necessary to generate revenue for the country.
Bodden Town West MP Chris Saunders, while supporting the changes, encouraged a focus in growing Caymanian employment in the industry.
Saunders also said Cayman needs to start looking at ways in which it can start growing the financial services industry and start “hunting” for business through the Cayman foreign offices.
“We need to start looking at ways in which we can equip our hunters to go out and actually grow the sector. It is too vital, and we’re not seeing the job growth in it as we expected,” he said.
Newlands MP Wayne Panton, in speaking on the Limited Liability Partnership Amendment and Validation Bill, 2024, suggested that government should be mindful to avoid a situation where express fees, which form part of the new amendments, become the de facto, ordinary fees.
This, he said, means really just ensuring that “we have the capacity and the capability to continue to provide excellent services to this really important industry”.
West Bay West MP McKeeva Bush, in contributing to the debate, urged action on “the bureaucracy” that has been built up in the country.
He said he has received complaints from the industry that bureaucracy is “slowing down business” in this country.
“If bureaucracy is killing their business, we continue to facilitate it,” he said, adding the government should be cautious on beneficial ownership.
Deputy Premier Kenneth Bryan, speaking to the issue of beneficial ownership, commended the premier for her work in the UK in the absence of briefing notes as well as piloting the bills on Monday.
“Yes, we have to navigate this very sophisticated and complicated industry called financial services and, yes, there is a lot of people across the world who would want to take our share of what our forefathers have built so well for us to succeed. But I do think that the stakeholders before and now are competent and are guiding and navigating through these turbulent and stormy waters with the appropriate thrust and winds and fuel to get us through,” he said.
He said the industry will continue to evolve and amend, and Cayman will continue to respond in kind in the best interest of the industry.
Attorney General Samuel Bulgin, during the debate, said Cayman has an “excellent” track record when it comes on to regulating the financial services industry.
“Fear not. There is good sense to what is being done in terms of the regulatory framework that we put in place. Those who are involved in legitimate business would want to know that they’re invested in the country that abides by the rule of law and things are done legitimately,” Bulgin added.
Premier O’Connor-Connolly is set to present a government motion to introduce the Beneficial Ownership Transparency (Legitimate Interest Access) Regulations, 2024 when the House resumes on Wednesday morning.
Bills passed
(1) Banks and Trust Companies (Amendment) Bill, 2024
(2) Companies (Amendment and Validation) Bill, 2024
(3) Companies Management (Amendment) Bill, 2024
(4) Exempted Limited Partnership (Amendment and Validation) Bill, 2024
(5) Insurance (Amendment and Validation) Bill, 2024
(6) Limited Liability Companies (Amendment and Validation) Bill, 2024
(7) Limited Liability Partnership (Amendment and Validation) Bill, 2024
(8) Monetary Authority (Amendment and Validation) Bill, 2024
(9) Mutual Funds (Amendment and Validation) Bill, 2024
(10) Partnership (Amendment and Validation) Bill, 2024
(11) Private Funds (Amendment and Validation) Bill, 2024
(12) Securities Investment Business (Amendment and Validation) Bill, 2024
(13) Virtual Asset (Service Providers) (Amendment) Bill, 2024
(14) Information and Communications Technology (Validation) Bill, 2024
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I hope the fee increases doesn’t affect customers and employees by way of increase bank fees and job redundancy. It is already too expensive to work and live in Cayman.